Question: William buys a basket of lemons on sale for $\$7$ before tax. The sales tax is $16\%$. What is the total price William pays for the basket of lemons? (Round to the nearest hundredth or cent.)
Solution: In order to find the total price, first find the amount of sales tax paid by multiplying the sales tax by the original price of the basket of lemons. ${16\%} \times {$7} =$ Percent means "out of one hundred," so $16\%$ is equivalent to $\frac{16}{100}$ which is also equal to $16 \div 100$ $16 \div 100 = 0.16$ Multiply the sales tax you just converted into a decimal by the original price to find the amount of sales tax that must be paid. ${0.16} \times {$7} = {$1.12}$ Add the sales tax you just found to the original price to find the final price William paid. ${$1.12} + {$7.00} = $8.12$ William needs to pay $$8.12.$